Rainbow Chicken has announced a remarkable set of results for the 2025 financial year, with its headline earnings more than tripling. The company’s strong performance is a positive sign for the poultry industry, but it has also warned of several significant risks that could impact its future.
The company, which was spun off from RCL Foods and listed independently on the JSE last July, said its turnaround strategy is well underway. This includes improvements in feed quality, better agricultural practices, and strict cost controls. Thanks to lower input costs, reduced expenses related to load-shedding and avian flu, and more efficient sales channels, Rainbow’s profitability has soared.
For the year ending June, revenue grew by 9% to R15.8 billion, driven by higher volumes and a better product mix. Headline earnings jumped by over 224%, reaching R584.8 million, with earnings per share more than tripling to 65.57 cents. The improved financial results were also supported by lower finance costs following the company’s recapitalisation before unbundling. As a result, Rainbow declared a dividend of 20 cents per share.
The animal feed division performed strongly, expanding margins through operational efficiencies and market responsiveness. However, despite these successes, Rainbow highlighted some looming threats. The US’s trade tariffs of up to 30% on South African poultry exports remain a major concern, with no resolution in sight. The US also demands an extension of export quotas linked to the historic Agoa agreement and calls for self-regulation on disease control.
The company also pointed to inefficiencies in South Africa’s rail system, which hinder the cost-effective distribution of raw materials like maize. It urged government and industry to prioritise freight logistics reforms to boost supply chain competitiveness.
Rainbow emphasised the importance of the poultry industry for national food security and rural employment. It has taken proactive steps to combat bird flu, including investing in upgraded biosecurity measures, relocating flocks to safer facilities, and restricting bird movement to prevent outbreaks.
While Rainbow’s results are impressive, the company remains cautious about ongoing industry challenges. Its success highlights resilience, but major risks such as trade barriers and logistics inefficiencies could threaten future growth.